New MF scheme launches touch two-year high

128 FMPs launched - more than double the amount seen in January

The number of new schemes launched by mutual funds in February has been the highest since March 2012. According to the monthly data posted by Association of Mutual Funds in India, 140 new schemes were launched in the month of February amounting to investments of Rs 22, 347 crore.

 

The last time fund houses launched higher number of schemes was in March 2012 when 157 new schemes launched garnered assets worth Rs 36,361 crore. 

 

Of the total 140 schemes that were launched, 131 were fixed income schemes, five equity schemes and one each from the gilt, overseas fund of funds, ELSS-equity and one infrastructure debt fund category.

 

The income funds garnered assets to the tune of Rs 30,812 crore most of which came from fixed maturity plans (FMPs).

 

Out of the 131 income schemes, 128 were FMPs or Fixed Maturity Plans noted a report by CRISIL.

 

"The financial year-end typically sees a spurt in FMP launches as investors are drawn to the indexation and double indexation benefits these offer, depending on the tenure," said the CRISIL report. In February, fund houses garnered Rs 21,300 crore by launching 128 FMPs compared with Rs 11,300 crore garnered in January through 75 FMP launches.

 

Analysts said that the inflows into FMPs had seen a rise as investors lured by the higher interest rates. "One-year commercial papers and certificates of deposit traded at 10.12% and 9.76% respectively, on February 28, compared with 10% and 9.64% on January 31," said the CRISIL report.